FFA vs SCHD
First Trust Enhanced Equity Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | FFA | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.13% | 0.06% | |
| AUM | $521M | $108.7B | |
| Dividend Yield | 6.19% | 3.13% | |
| Holdings | 86 | 104 | |
| YTD Return | +11.66% | +26.54% | |
| 1Y Return | +19.75% | +30.90% | |
| 3Y Return (annualized) | +17.89% | +16.29% | |
| 5Y Return (annualized) | +9.76% | +9.65% | |
| Volatility (annualized) | 16.6% | 13.6% | |
| Max Drawdown | -67.6% | -33.4% | |
| Fund Family | First Trust Portfolios (US) | Charles Schwab Asset Management | |
| Category | Alternative | Equity | |
| Inception | Aug 26, 2004 | Oct 20, 2011 |
FFA vs SCHD Performance
First Trust Enhanced Equity Income Fund (FFA) is a ETF from First Trust Portfolios (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FFA returned +19.75% while SCHD returned +30.90%. Year to date, FFA is up 11.66% versus a gain of 26.54% for SCHD.
Over three years, FFA compounded at +17.89% per year against +16.29% for SCHD; over five years the annualized figures are +9.76% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +2.55%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FFA has been the more volatile fund, with annualized monthly volatility of 16.6% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -67.6% for FFA and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FFA charges 1.13% per year while SCHD charges 0.06%. On a $10,000 position that is $113 vs $6 annually, a gap of $107 per year that compounds over a long holding period. On income, FFA currently yields 6.19% against 3.13% for SCHD.
Holdings Overlap
FFA and SCHD share 5 holdings out of 156 unique holdings combined, representing a 6.8% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FFA or SCHD?
FFA has an expense ratio of 1.13% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $107 per year of difference.
Which performed better, FFA or SCHD?
Over the past year FFA returned +19.75% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FFA annualized +2.55% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, FFA or SCHD?
FFA has been the more volatile fund at 16.6% annualized versus 13.6% for SCHD. Worst drawdown: FFA -67.6% vs SCHD -33.4%.
Should I hold both FFA and SCHD?
FFA and SCHD have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FFA and SCHD?
FFA and SCHD share 5 common holdings with a 6.8% weight overlap. Combined, they hold 156 unique securities.
Which pays a higher dividend, FFA or SCHD?
FFA yields 6.19% while SCHD yields 3.13%, so FFA currently pays the higher dividend yield.
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